Which of the following represents the impact of a taxable cash sale of $650 on the accounting equation if the sales tax rate is 4%?
Multiple Choice
An increase to cash for $676, an increase to sales tax expense for $26, and an increase to sales revenue for $650.
An increase to cash for $650, an increase to sales tax payable for $26, and an increase to sales revenue for $624.
An increase to cash for $676, an increase to sales tax payable for $26, and an increase to sales revenue for $650.
None of these answer choices is correct.
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